UNI rallies after Uniswap removes $596M worth of tokens from supply
Uniswap recently executed a 100 million UNI token burn, permanently removing approximately $596 million worth of tokens from circulation.
Summary
Uniswap permanently burned 100M UNI after a 99.9% governance vote passed UNIfication.
Protocol fees are now live while interface fees remain zero
UNI jumped 19% during voting and rallied another 6% following the burn.
The burn followed overwhelming community approval of the UNIfication governance proposal, which passed with 99.9% support on December 25.
UNI (UNI) rallied 6% over the past 24 hours, trading in a range of $5.89 to $6.35. The token surged 19% when voting commenced on December 19-20 as institutional and community participants recognized the proposal’s transformative impact on token economics.
Uniswap Labs announced that interface fees have been set to zero while protocol fees activate value capture mechanisms.
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Uniswap governance vote achieves 99.9% approval
The UNIfication proposal received 125,342,017 UNI votes in favor versus just 742 against, substantially exceeding the 40 million UNI quorum requirement.
UNIfication has officially been executed onchain✓ Labs interface fees are set to zero✓ 100M UNI has been burned from the treasury✓ Fees are on for v2 and a set of v3 pools on mainnet✓ Unichain fees flow to UNI burn (after OP & L1 data costs)Let the burn begin pic.twitter.com/fcr3WY3gPc— Uniswap Labs 🦄 (@Uniswap) December 27, 2025
The two-day governance timelock preceding the treasury burn demonstrated the protocol’s commitment to transparent implementation of structural changes. Voting began at 3:50 UTC on December 19-20, immediately causing price response.
Uniswap Labs confirmed that “Labs interface fees are set to zero” while “100M UNI has been burned from the treasury.” Protocol fees are now active for v2 and select v3 pools on mainnet. Unichain fees will flow to UNI burns after covering Optimism and Layer 1 data costs.
Future fee sources including protocol fees on Layer 2s, v4, UniswapX, PFDA, and aggregator hooks will be proposed through separate governance votes over time.
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Fee structures vary across protocol versions
Uniswap v2 implements a hardcoded mechanism where governance toggles fees across all pools simultaneously.
With fees activated, liquidity provider fees decrease from 0.3% to 0.25%, with the 0.05% differential captured by the protocol for token burns.
Uniswap v3 uses granular governance control, permitting individual fee adjustments by pool. Protocol fees are set at one-quarter of LP fees for 0.01%-0.05% pools and one-sixth of LP fees for 0.30%-1.00% pools.
The tiered structure creates aligned incentives across different pool risk profiles. Lower-fee pools face proportionally smaller protocol extraction, while higher-fee pools contribute more to the burn mechanism.
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